Vi share price target 2024,2025,2026,2030

Vi share price target 2024,2025,2026,2030: Vodafone Idea, now Vi, is a major Indian mobile network offering services like 2G, 4G, and 5G from Mumbai and Gandhinagar. It gets tough competition from telecom giants like JIO and AIRTEL.

Vi has a customer base of 30 crores. Its share price is currently hovering around Rs 13.85, 40% higher than its price on the same date previous year’s.

Vodafone and Idea were once competitors, but due to the decreasing customer base, both companies suffered losses. Given this, the talk of a merger of both companies came to light, and on 31 August 2018, both companies became one.

This new company was named Vi. Vodafone got a 45% stake in the company, and Aditya Birla Group acquired a 26% stake. The rest of the shares remained in public hands.

Vi share price target 2024,2025,2026,2030

Current state of Vi share price

Vi share price target 2024

VIL has reported QoQ growth of 2% in EBITDA for the 2nd quarter of FY24. The company’s subscriber base is declining but at a slower pace, i.e., 1.6M, compared to a 4m loss in the last six quarters.

Vi’s net loss increased to INR 87 billion in Q2FY24 compared to INR 78 billion in Q1FY24 thanks to the higher finance costs and taxes.

Vi have cut the lifespan of their Rs. 99 plan in half, from 28 days down to 15. We didn’t see the full impact of this change in the second quarter because it kicked in during August.

Teaming up with Yotta for data services could seriously boost their cloud and data center offerings in India. Meanwhile, the industry’s seeing a boost in genuine subscribers and less worry over folks juggling multiple SIM cards.

With very little hope from the stock, we think that Vi share price target in 2024 would be Rs 23, and the second target would be Rs 27.

Vi share price target 2024,2025,2026,2030

Vi share price target 2025

The recent decline in VIL’s customer numbers has shown signs of slowing down. In the second quarter of 2024, they lost 16 million subscribers, leaving them with 219.8 million.

This loss is less severe when compared to the previous quarter, where they lost 45 million, and is also lower than their six-quarter average loss of 4 million.

Similarly, their active users decreased by 2.9 million, falling to 199.8 million, better than the 5.2 million drop in the first quarter and the 4.4 million average decrease over the past six quarters.

However, the company saw a bit more customer turnover, with the rate increasing to 4.1% from 3.9%. On a brighter note, their data users are rising, with a jump of 1.3 million quarter-over-quarter, reaching 137.2 million. Their 4G users specifically grew by 1.8 million to 124.7 million.

Currently, Vi is suffering from losses, and if they manage to cover up the losses and turn their balance sheet into a positive one, we can expect 1st share price target of Rs 36 in 2025, and the second target could be Rs 40.

Expert predictions for Vi share price target in 2026 and beyond

Since Jio and Airtel constantly pump money into their business to make services cheaper and acquire more customers, Vi is facing tough competition and barely surviving in the telecom industry.

In the booming 5g age, Vi needs huge investments to keep up with Jio.If they do not catch up with the competition quickly, it could be game over for Vi in 2026.

On the other hand, the positive aspect is the small number of telecom providers in India, which means if Vi manages to bring in the required investments and more customers, their share prices could rise by a good margin.

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Vi share price target 2030

Vi needs a significant amount of cash to cover the debt. With a net debt of INR 2.1 trillion, there is very limited opportunity for the equity holders to make money in the long term.

If you are not invested in Vi yet, we suggest you not take the plunge, and if you are invested and currently in profit, we suggest you exit and not stay invested for the long term.

Although the future seems dark, we don’t want to give you false hope. Assuming all things remain positive, Vi’s share price target for 2030 would be Rs 130, and the second target would be Rs 140.

SWOT ANALYSIS

STRENGTHS

• Skillfully handling assets to boost earnings, with a rising Return on Assets over two years.
• Revenue’s been climbing quarterly, and cash flow from primary operations has strengthened consistently over the last two years. 
• No promoter pledge issues: institutional investors have been upping their stakes.

WEAKNESSES

• Warning: Steep debt interest charges eating into profits. Earnings are taking a hit as the first line of defense weakens. 
• The latest price barely holding above this threshold.
• Vi is seeing dropping profits and shrinking margins every quarter and year-over-year. 
• For two consecutive quarters, there’s been a downward trend. Firms with shoddy finances score low in robustness.
• Cash flow is in the danger zone as firms struggle to create positive cash.

OPPORTUNITIES

• Stocks bounced back strongly from the 52 week low.
• Sporting PE under 10.

THREATS

• None

Factors affecting Vi’s share price in 2024, 2025, and beyond

1. The company is laser-focused on getting its 4G customers to sign up for unlimited plans. This smart move has led to a consistent rise in the average revenue per user (ARPU) for the past nine quarters.
2. Vi has seen a 2% jump from quarter to quarter, hitting INR 142, all thanks to more people moving to 4G and some smart tweaks in their pricing.
3. The number of unique broadband towers shifted slightly, with 18.4 thousand out of 731.2 thousand buildings, and the total broadband sites fell to 440 thousand.This demonstrates VIL’s ongoing efforts to maintain and optimize its infrastructure despite the challenges in subscriber retention.
4. At the India mobile conference, Vi showed off what’s next in tech and the exciting possibilities of 5G. Their Internet of Things (IoT) tech is set to bring India’s ports up to world-class standards, and we’re doing it by tapping into Vodafone PLC’s global IoT know-how right here in India.
5. When it comes to cash flow, VIL is strategically expanding their 4G reach and keeping up with payments. Their big leap into 5G will hinge on new funding.
6. They’re zeroing in on equity investments knowing this will open doors to bank loans. This approach is prudent and ensures they keep their tech advancing without pause.

Callenges

The business had to set aside INR 82 billion for taxes because of a ruling by the Supreme Court about how to classify license fee taxes. Interest charges will be added on top, but they are already accounted for in our interest costs.

Vi went to the Supreme Court to sort out a couple of issues: an error in figuring out their Adjusted Gross Revenue (AGR) dues, and the interest charges for late payments were pretty hefty. They’re still waiting for their plea to be taken up for a full hearing.

Risk of owning Vodafone Idea Share

Over the last three years, Vodafone Idea Ltd has seen its revenues shrink by 213%. The firm also recorded a flat 0% Return on Equity (ROE) and a low 10.34% Return on Capital Employed (ROCE). Moreover, their book value has dipped into the negatives.

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Conclusion

Despite its current struggles, experts predict a positive future for Vi with potential growth in share price over the next few years. Investors should keep an eye on this stock and consider its long-term potential before making any decisions.